Mumbai slums and supply chain efficiency

An article in the New York Times (Dec 29, 2011) describes the Dharavi slum in Mumbai, India, home to a million people and generating an economic output of close to $ 1 billion. Admist the grime are thriving supply chains that take an order for 2700 custom briefcases by a bank to a supplier, to a leather goods store to a manufacturer in Dharavi, to a home shared by 22 adults,  manufactured by people sitting crosslegged for delivery within two weeks.  Should these slums be demolished, will the associated supply chain efficiency disappear ? Is the competitiveness of the trust, close proximity of labor, can-do spirit of residents and shared governance by the residents key to their global competitiveness ? How much of the “parallel economy” that evades taxes but generates income for many of the poor a reality in merging economies that should be tolerated as they grow ?

About aviyer2010

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